| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers F > Headlines for Flotek Industries, Inc. > News item |
Flotek updates facility’s borrowing base terms, financial covenant
By Marisa Wong
Morgantown, W.Va., June 13 – Flotek Industries, Inc. entered into an 11th amendment on Wednesday to its amended and restated revolving credit, term loan and security agreement dated May 10, 2013 with PNC Bank, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.
Under the amendment, the maximum revolving advance amount remains at $75 million, but the borrowing base can be reduced by an amount of up to $10 million.
The collateral block is now equal to $10 million less the amount of any collateral value in excess of $75 million and, to the extent not duplicated, the amount of any inventory collateral value in excess of $52 million.
In addition, the company’s compliance with the fixed-charge coverage ratio and the leverage ratio has been suspended through Dec. 31, 2018, as long as the undrawn availability is not less than $15 million on the last day of any month through December. If the undrawn availability is less than $15 million on the last day of any month through December, the company will be required to comply with the fixed-charge coverage ratio and the leverage ratio at the following quarter-end and for any remaining quarters in 2018.
Under the amendment, compliance with the fixed-charge coverage ratio and leverage ratio will be required beginning with the first quarter of 2019 ending on March 31, 2019.
The company agreed to pay fees and expenses to the agent in connection with the amendment, the filing noted.
Flotek is a Houston-based developer and distributor of oilfield technologies, including specialty chemicals and down-hole drilling and production equipment.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.